FedEx (FDX) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of FedEx (NYSE:FDX) from a sell rating to a hold rating in a research note released on Tuesday.
According to Zacks, “Shares of FedEx have outperformed its industry on a year-to-date basis. The strong growth of e-commerce is a positive for the company. FedEx's efforts to modernize its aircraft fleet are also encouraging. The company has an impressive dividend payment history. In June 2017, the company raised its quarterly dividend by 25%. With respect to buybacks, the company repurchased 2.96 million shares in fiscal 2017. Moreover, the hike in shipping rates, announced in September 2017, should boost revenues. However, high costs are expected to hurt the company's bottom line in the second quarter of fiscal 2018 as was the case in the preceding quarter. Costs related to the integration process of TNT Express and the increased investments at its Ground unit are also likely to hurt the bottom-line. Detailed results should be out on Dec 19.”
Other equities analysts also recently issued reports about the stock. Stifel Nicolaus reaffirmed a neutral rating on shares of FedEx in a report on Wednesday, August 16th. Wells Fargo & Company lifted their price objective on shares of FedEx from $235.00 to $240.00 and gave the stock an outperform rating in a report on Thursday, September 21st. Citigroup lifted their price objective on shares of FedEx to $275.00 and gave the stock a buy rating in a report on Tuesday. Loop Capital reaffirmed a buy rating and set a $260.00 price objective (up from $250.00) on shares of FedEx in a report on Wednesday, September 20th. Finally, UBS downgraded shares of FedEx from a buy rating to a neutral rating and cut their price objective for the stock from $235.00 to $233.00 in a report on Friday, September 15th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and twenty-three have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average price target of $235.21.
FedEx (NYSE:FDX) last posted its quarterly earnings data on Tuesday, September 19th. The shipping service provider reported $2.51 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $3.17 by ($0.66). The firm had revenue of $15.30 billion for the quarter, compared to analysts’ expectations of $15.35 billion. FedEx had a return on equity of 20.69% and a net margin of 4.72%. FedEx’s revenue was up 4.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.90 earnings per share. equities research analysts forecast that FedEx will post 12.47 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 2nd. Investors of record on Monday, December 11th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 0.83%. The ex-dividend date is Friday, December 8th. FedEx’s dividend payout ratio is currently 18.87%.
In related news, Director Kim Jabal sold 3,980 shares of the business’s stock in a transaction dated Wednesday, November 1st. The stock was sold at an average price of $225.55, for a total value of $897,689.00. Following the sale, the director now directly owns 6,080 shares in the company, valued at approximately $1,371,344. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Henry J. Maier sold 11,150 shares of the business’s stock in a transaction dated Thursday, October 26th. The shares were sold at an average price of $228.46, for a total value of $2,547,329.00. Following the completion of the sale, the insider now owns 36,747 shares in the company, valued at $8,395,219.62. The disclosure for this sale can be found here. Insiders sold a total of 40,094 shares of company stock worth $9,024,637 over the last 90 days. 8.45% of the stock is currently owned by company insiders.
A number of institutional investors have recently made changes to their positions in the stock. Krilogy Financial LLC increased its position in shares of FedEx by 0.4% during the second quarter. Krilogy Financial LLC now owns 511 shares of the shipping service provider’s stock valued at $111,000 after buying an additional 2 shares during the period. Park National Corp OH increased its position in shares of FedEx by 0.9% during the second quarter. Park National Corp OH now owns 1,178 shares of the shipping service provider’s stock valued at $256,000 after buying an additional 10 shares during the period. Alexandria Capital LLC increased its position in shares of FedEx by 2.5% in the second quarter. Alexandria Capital LLC now owns 540 shares of the shipping service provider’s stock worth $117,000 after purchasing an additional 13 shares during the last quarter. Salem Investment Counselors Inc. increased its position in shares of FedEx by 2.8% in the second quarter. Salem Investment Counselors Inc. now owns 479 shares of the shipping service provider’s stock worth $104,000 after purchasing an additional 13 shares during the last quarter. Finally, IHT Wealth Management LLC increased its position in shares of FedEx by 0.7% in the first quarter. IHT Wealth Management LLC now owns 2,244 shares of the shipping service provider’s stock worth $440,000 after purchasing an additional 15 shares during the last quarter. Institutional investors and hedge funds own 75.73% of the company’s stock.
FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The Company’s segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services.
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